Advertisment
The advertisement which appeared on bus exteriors featured an image of a man leaning out a car door. The text accompanying the image read:
“EARN UP TO €1,300 a WEEK. FREENOW
The Mobility Super APP”.
The advertisement on Instagram featured similar text and invited viewers to:
“EARN UP TO €1,300 a WEEK. FREENOW
Take full control of your time and your earnings. Drive your way to €1,300 a week”.
Complaint
33 complaints were received in relation to the advertising.
Issue 1
The majority of complaints were from taxi drivers. The common thread running through the complaints was that the earning potential referenced in the advertising was misleading. The complainants said the figure mentioned was not achievable and gave a false impression that those working in the taxi industry were earning more than they were. They said it would not be possible to earn this amount of money per week without working additional hours.
Issue 2
Some complainants considered that the amount referenced in the advertising was misleading because it wasn’t stated whether the amount referenced was net or gross. They said it also appeared to be the case that additional deductions such as commission to the advertisers, additional costs such as fuel, licence fees etc., may not have been taken into consideration when referencing earning potential.
Response
Issue 1
The advertisers said that the statement of earning up to €1,300 a week was obtained from actual FREENOW driver earnings data from the 2022 calendar year. This data was provided to the Executive with all necessary confidential information redacted. The information outlined the number of weeks worked and the weekly earnings for the Free Now drivers over the year in question. They said that earning data represented the top 5% of FREENOW drivers in 2022 and therefore was a true representation of what someone could earn up to on a weekly basis using the FREENOW app. The advertisers highlighted the fact that more than 7% of the drivers had earned up to €1,300 a week driving with FREENOW in 2022.
The advertisers also said that to earn €1,300 a week the Average hours in Booking for the drivers was 31 hours. “Average hours in Booking” referred to when the drivers were using the FREENOW App to complete trips.
Issue 2
With regards to the complaints around whether the figure in the advertisement was net or gross, the advertisers said that any driver who chose to join the FREENOW platform was a sole trader and as a result filed their own tax returns. FREENOW was not positioned to calculate what expenses or outgoings a driver may have, including their individual tax situation. As a result, the figure outlined in the advertisement was a gross figure.
Further Information:
The ASAI Executive undertook a basic analysis of the information provided. The analysis showed that 83% being split nearly equally between €0 – €499 and €500 to €1000, with 10%, having earned between €1,000 and €1,299. The remainder, 7%, earned more than €1,300.
Conclusion
Complaints upheld in Part.
The Complaints Committee considered the detail of the complaints and the advertisers’ response.
Issue 1 – Upheld
The Complaints Committee noted that the advertisement had offered persons interested the opportunity to “earn up to €1,300 per week”. They also noted that for the year 2022 just over 7% of drivers had earned the amount referenced and this amount had been based on 31 “Average hours in Booking”.
The Committee considered that while the advertisement had stated ‘up to’ indicating that not all drivers had earned €1,300, they considered that the fact that only 7% had earned that amount (or more) was material information that should have been referenced in the advertisement. In addition, they also considered that the number of hours involved was also relevant information that should have been referenced in the advertisement to inform prospective drivers on the level of commitment required to reach the earnings mentioned.
In the circumstances, the Committee concluded that without qualification the advertisement had the potential to mislead and to be in breach of Sections 4.1, 4.5, 4.9 and 4.10 of the Code.
Issue 2 – Upheld in Part
The Committee noted that those who signed up the platform in question were categorised as ‘sole traders’ and would therefore be responsible for their own tax affairs, and costs such as fuel, etc. However, the advertising did not make it clear that the ‘up to’ figure would have to take account of the app commission that would be deducted from driver earnings. In the circumstances, the Committee concluded that without qualification the advertisement had the potential to mislead and to be in breach of Sections 4.1 and 4.5, 4.9 and 4.10 of the Code.
ACTION REQUIRED:
The advertising should not appear in the same format again.
